State v. Arkansas Fuel Oil Co.

268 S.W.2d 311
CourtCourt of Appeals of Texas
DecidedApril 14, 1954
Docket10163
StatusPublished
Cited by7 cases

This text of 268 S.W.2d 311 (State v. Arkansas Fuel Oil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Arkansas Fuel Oil Co., 268 S.W.2d 311 (Tex. Ct. App. 1954).

Opinion

GRAY, Justice.

This cause is one that is usually termed an anti-trust suit. It was filed by appellant, the State of Texas, under Section 26 of Art. 1, Constitution of Texas, Vernon’s Ann.St., and Title 126, Arts. 7426-7447, Vernon’s Ann.Civ.St., against appellees, ten oil companies, each authorized to do business in Texas either by charters or by permits issued prior to July, 1946.

Appellant’s petition consists of one hundred typewritten pages to which petition *314 appellees directed approximately two hundred and fifty special exceptions. This statement makes it apparent that a detailed statement of the petition and the exceptions is not practical for the purposes of this opinion. Only general statements as to the contents of the petition will be made, however, it is our opinion that the petition contains sufficiently detailed statements and allegations in support of the general allegations herein mentioned. Also, the special exceptions will be noticed in such general groups as will enable us to dispose of the questions presented.

The petition names the several appel-lees, their respective predecessors, affiliates and parent corporations, and alleges that they are and have been doing business in Texas. It states the purpose of the suit is to perpetually enjoin appellees and each of them from making or engaging in any combination of their capital, skill and acts, agreements, conspiracy or conduct in violation of the Constitution and statutes, supra, and to collect penalties from each. It alleges:

“ * * * that since July 29, 1946, there has existed among the defendants a combination of their capital, skill and acts, all as hereinafter more specifically alleged, for the following purposes:
“1. To create and tending to create and carry out restrictions in the pursuit of the business of marketing gasoline within the State of Texas.
“2. To fix, maintain, and increase the tank wagon price of gasoline within the State of Texas.
“3. To prevent and lessen competition in the manufacturing, refining, and marketing of gasoline within the State of Texas.
“4. To fix and maintain a standard or figure whereby the tank wagon price of gasoline marketed within this State is affected, controlled, and established.”

The terms used in the petition are defined, however, at this point we deem it necessary to quote only one of such definitions, viz.:

“The term 'tank wagon price’ as used herein refers to the price (exclusive of all taxes) at which gasoline is delivered in bulk lots by bulk agents, consignees, jobbers, distributors, or wholesalers to retail dealers, service stations, company service stations, and other retail distributors.”

The petition alleged that: each appellee, its affiliate or subsidiary, produces crude oil in the State, some of which is refined by the producer, some is sold to other appellees, and some to persons not parties to the suit; that appellees do not produce all of the crude oil used by them but make purchases from other producers; that as a part of the conspiracy alleged, appellees have agreed to maintain and, except in one named instance, have maintained uniform and noncompetitive prices paid for crude oil purchased in the different fields in Texas and that such agreement is a part of the alleged conspiracy. It states that when it is alleged that anyone or more of ap-pellees did any act it is meant that it was done by authorized directors, officers, agents, servants and employees. It is alleged: that the conspiracy and agreement between appellees had its inception prior to July 20, 1946, the exact date being unknown to appellant but well known to ap-pellees; that it is the outgrowth of long planned action by appellees; that in 1946, when the decontrol of prices by Congress became apparent appellees saw the opportunity to place their agreement into-effect; that when price controls were ended on July 1, 1946, appellees on or about July 29, 1946, placed their agreement into effect in Texas, and that the

“ * * * activities described hereinafter both manifest the existence of the combination and have made possible the effectuation of it. Such activities are:
“1. The participation by the defendants in trade association activities *315 during many years prior to the date of this petition, as hereinafter detailed.
“2. The standardization of gasoline through the co-operative efforts of the defendants and other parties, as hereinafter detailed.
“3. The employment by defendants of ‘exchanges’ of gasoline, as hereinafter detailed.
“4. The concerted efforts on the part of defendants to maintain uniform and non-competitive posted crude oil prices as among themselves, as hereinafter set out.
“5. The existence of identical tank wagon gasoline prices among defendants since on or about July 29, 1946, which said identical prices have been coupled with practically simultaneous increases on tank wagon gasoline prices by the defendants and the existence of a uniform price for each grade of gasoline in all areas in Texas, regardless of freight costs involved. Likewise, in making any change in tank wagon gasoline prices, each defendant did so with knowledge that each of the other defendants had done or would do likewise.”

The petition alleges the geographic locations of appellees’ refineries; that through their combined efforts appellees have accounted for arid controlled approximately 80 per cent of the entire business of marketing gasoline through their bulk storage plants, and that approximately 90 per cent of the retail outlets within the State market gasoline under the trade name or brand of one or the other of appellees. Appellees’ participation in various named trade associations is alleged together with the adoption in 1928 of a code known as “Code of Practices for the Marketing and Refining of Petroleum Products”; that such code was accepted by each of appel-lees ; that appellees along with others sought to encourage and foster observance of the code by members of the petroleum industry in Texas and that this activity .continued until the enactment of the National Industrial Recovery Act in 1933, 48 Stat. 195.

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Cite This Page — Counsel Stack

Bluebook (online)
268 S.W.2d 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-arkansas-fuel-oil-co-texapp-1954.